How does the FTC evaluate AI for illegal discrimination?

Focus on inputs, but also on outcomes. When we at the FTC evaluate an algorithm or other AI tool for illegal discrimination, we look at the inputs to the model – such as whether the model includes ethnically-based factors, or proxies for such factors, such as census tract. But, regardless of the inputs, we review the outcomes.

Are AI and automated decision-making a violation of the FTC's laws?

Over the years, the FTC has brought many cases alleging violations of the laws we enforce involving AI and automated decision-making, and have investigated numerous companies in this space.

Did CompuCredit violate the FTC Act?

More than a decade ago, the FTC alleged that subprime credit marketer CompuCredit violated the FTC Act by deceptively failing to disclose that it used a behavioral scoring model to reduce consumers’ credit limits.